Morocco's central bank expects economic growth to 5.3% in 2021

Bank Al-Maghrib predicts value-added of non-agricultural activities will increase by 3.5 percent in 2021, pending evolution of coronavirus pandemic, vaccination campaign.

RABAT - Morocco's economy is expected to grow by 5.3% in 2021 and 3.2% in 2022, according to Bank Al-Maghrib (BAM) forecasts.

"The value-added of non-agricultural activities would increase by 3.5 percent in 2021 and, assuming a projected cereal production of around 95 million quintals, the value-added of the agricultural sector would rebound by 17.6 percent, thus bringing the growth of the national economy to 5.3 percent," BAM explained in a press release.

In 2022, the growth rate would consolidate to 3.2 percent, reflecting an acceleration in its non-agricultural component to 3.8 percent and a 2 percent drop in agricultural value-added, assuming a return to an average cereal production of 75 million quintals.

Over the forecast horizon, economic activity is projected to continue recovering, supported by the 120 billion dirhams recovery plan, the accommodative monetary policy stance, and a relative renewal of confidence in view of the progress made in the vaccination campaign and of the favourable weather conditions prevailing during this crop year, the Central Bank noted.

However, these prospects are surrounded by considerable uncertainty, mainly with regard to the evolution of the pandemic and to the availability of vaccines, both nationally and internationally, it added.